Rep. Steven Scalise is working on helping seniors save on prescription drug prices:
The proposal primarily affects the 644,000 Louisiana residents -- and 45 million people across the country -- enrolled in Medicare’s Part D drug benefit. Part D plans are federally subsidized but administered by private insurers who compete to sell their plans to the public.
These insurers work with middlemen known as pharmacy benefit managers to design plans and determine premiums, co-pays and co-insurance -- the percentage of a drug’s price that Medicare enrollees must pay out of pocket. PBMs decide which drugs to include in each Part D plan. They leverage their decision-making power to demand big discounts from pharmaceutical companies.